Anglo Asian Mining Share Discussion Threads

[wanobi] 20/8/2018 15:58

41.99 being paid now, so surely soon it'll jump up!! Thanx W

[wanobi] 20/8/2018 15:55

thanx jeanesy, I'm not sure many want to post here at the moment (& that's ok, I understand) but,,, I would also like to know the answer to the question you have raised, do you feel able to ask it on the mattjos thread to see if you can get a response, thanx W (for obvious reasons, I fully understand if you don't want to ask it there)

[jeanesy] 20/8/2018 14:56

Spread is indeed 40.5 and 41.99 so yes next buy would be 42p . so mid price is actually 41.25p so not sure why we still show 40p ?

[wanobi] 20/8/2018 14:28

crazycoops, does that mean I am reading this correctly? if I am, I assure you it's only simple logic I've figured out for myself... not sure if the spread has anything to do with it though!? thanx W

[bumpa33] 20/8/2018 14:25

2sporrans - yes thank you :)

[crazycoops] 20/8/2018 14:24

It is almost as if a certain poster is trying to keep the other thread above this one - and not sounding like such a novice all of a sudden. LOL!

[wanobi] 20/8/2018 14:23

g'day to my Australian visitor, many thanks for dropping in, you are most welcome, cheers W

[wanobi] 20/8/2018 14:18

Hi all, next buy at full 42p offer by the looks of the trade page, so I'd say this will be rising soonish without the seller? anyone care to support my logic or educate me as to why I'm wrong? many thanx W

3 buys 41.25, 41.50 & 41.75...... so 42p is next buy?

[mattjos] 20/8/2018 13:46

No sign of auction seller. did that volume last week finally clear him out?

[edjge2] 20/8/2018 13:40

yeh to just that soon 2sporrans

[wanobi] 20/8/2018 11:29

could that indicate that the seller everyone is monitoring on the mattjos thread has now gone I wonder? You guys I'm sure will have seen this time and time again in AAZ... so much to understand :-)

[wanobi] 20/8/2018 11:25

well, as you said, if the MM's don't want anyone to trade they have certainly succeeded so far today.... 106 shares so far.... (see final paragraph below)

Interesting read on MM's:-

A Background to the Market and Market Makers
A Market Maker runs a 'shop' and you buy shares from him or sell them back to him.

The Market Makers act as retailers of shares and display their prices during working hours. The prices may vary (sometimes considerably) during the day, depending on a number of influences. For example, if holders of very large amounts of a share decide to sell (or a combination of a lot of holders of small amounts), then the Market Makers will reduce the price that they are prepared to pay for the share. The converse is true also; if there is a consistent and large enough demand for a share, then the Market Makers will increase the price. Market Makers make money from buying shares at a lower price to which they sell them. This is the bid/offer spread. The more actively a share is traded the more money a Market Maker makes.

It is often felt that the Market Makers manipulate the prices. "Market Manipulation" is an emotive term, and conjurers images of shady deals and exploitation. Market Makers are not elusive companies that appear then vanish overnight. Market Makers are duty bound to make a market and to meet the needs of those they are responsible, to this end they may try to influence the market.

Market Makers are however known to lower prices to "panic" investors into selling, sometimes called "shaking the tree"? Moving the price up, encourages sells, moving it down also encourage sell, hence also the term dead cat bounce when a Market Maker will mark a falling stock up to encourage buyers in thinking they have reached the bottom.

A good pricing system such as Level 2 will give you an indication which Market Makers are keenly priced. Your broker using the same systems as you now have can sometimes get a better price than those on the screen. This is because Market Makers compete with one another for business. When your broker calls the Market Maker he is giving them the opportunity to 'bid' for the business, the Market Maker may well improve on the price on offer via the screens. The Market Maker only makes money when they are buying and selling, so the Market Maker will prefer to see the business go through their books at a reduce margin than allow it to go to another Market Maker.

When you buy and sell shares in most circumstances (SEAQ/AIM) your broker has to go through a Market Maker. The Market Maker works for an institution that makes a market (will buy and sell) that particular stock. They provide the market with liquidity - i.e. there will always be a price you can sell your stock at, there will always be a price you can buy some stock at (unless the share is suspended).

Market Makers obviously have a degree of risk. If there is a flood of sellers, because the Market Maker's job is to provide liquidity, he has to buy those shares even though the rest of the market may want to sell. If the price continues to fall he could be left with a lot of stock on his hands that he paid considerably higher prices for than he can sell for now. And vice versa - if a share is rising sharply the Market Maker has to continue selling the stock to the buyers - he could end up "short" of stock. In this situation he has sold stock he has not got, to fulfill all the buy requests, and he has to buy this stock in to balance his books, but at higher prices and makes a loss.

The Market Makers are effectively in competition with each other. With the example of IMG above, why would a seller want to sell shares to UBSW at 380, when the seller can deal with MLSB or AITK and receive 385p per shares? If UBSW wants to purchase shares, the Market Maker has to raise its bid price. If Market Makers want to buy shares because they may think the stock is heading up or they are short of stock they have to raise their bid price if theirs is not the best bid on the screen. This can cause the spread to narrow. If Market Makers are keen to sell stock they may want to lower their offer price to tempt buyers in. If all Market Makers start moving their offer prices lower to tempt in buyers and offload stock, certain traders could view this as negative for the short term. If Market Makers need or want to take in more stock they will raise their bid prices - certain traders again could see this as a sign of a short-term upswing in prices.

If a Market Maker does not want to trade in the stock he is making a market in he may make his bid/ask spread so wide to discourage anyone to trade with him. If all the Market Makers do this the stock can become illiquid temporarily as no trades are going through - buyers do not want to buy, sellers do not want to sell their stock at what they envisage is a poor bid price.

[2sporrans] 20/8/2018 10:17

Does this work Bumpa?

Net positions has form as a leading indicator: 2002 was a great time for long term investors to buy/go-long-on gold; ditto late 2015 bought in at bear market lows, just before the rampant rally of [early-mid]2016 that was best of past 5 years.

Conversely, lowest saggings on display coincide with the best POG performance periods; like 2009,10,11 [peak rush of the great Bull market].

Maybe we shall see strength return in the non $US price first; the main rally follow when the $US finally weakens.?

[wanobi] 20/8/2018 09:52

thanx jeanesy, anyone know why they do this? 4p when it's actually 1p etc? cheers W

[jeanesy] 20/8/2018 09:19

Although the spread is quoted as 4p the actual spread is actually only around 1p this morning ( 40.27 bid 41.25p to buy) Not sure why the quoted spread is 4p unless the MM'S dont want anyone to trade today which is why they sometime advertise such a large spread !! A spread of around 1p is actually pretty good for AAZ !!

[bumpa33] 20/8/2018 09:08

tried to post it ROTA but no joy, so here’s the link :)

[return_of_the_apeman] 20/8/2018 08:48

Bumpa,

img src="blah"

Put the above html in angled brackets, then blah is obtained by right clicking on the image at it's location, copy image location and pasting it inplace of blah, and there you have it hopefully

[wanobi] 20/8/2018 08:43

morning all, ok, first lesson of the week for me,,, AAZ spread,,, 4p on 40p price

What are the determinants of a stock's bid-ask spread?

As I have looked this up,,, it seems to make sense to me to post it here as a record to refer back to - apologies if it's too basic for the great posters on the other threads; but, maybe someone out there will appreciate it and I will continue to keep learning, thanx all

Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the amount that a buyer is willing to pay for a particular security; the ask price is the amount that a seller wants for that security - it is always a little higher than the bid price. The difference between the bid and ask prices is what is called the bid-ask spread and this difference represents a profit for the broker or specialist handling the transaction.

There are several factors that contribute to the difference between the bid and ask prices. The most evident factor is a security's liquidity. This refers to the volume or amount of stocks that are traded on a daily basis. Some stocks are traded regularly, while others are only traded a few times a day. The stocks and indexes that have large trading volumes will have narrower bid-ask spreads than those that are infrequently traded. When a stock has a low trading volume, it is considered illiquid because it is not easily converted to cash. As a result, a broker will require more compensation for handling the transaction, accounting for the larger spread.

Another important aspect that affects the bid-ask spread is volatility. Volatility usually increases during periods of rapid market decline or advancement. At these times, the bid-ask spread is much wider because market makers want to take advantage of - and profit from - the change. When securities are increasing in value, investors are willing to pay more, giving market makers the opportunity to charge higher premiums. When volatility is low and uncertainty and risk are at a minimum, the bid-ask spread is narrow.

A stock's price also influences the bid-ask spread. If the price is low, the bid-ask spread will tend to be larger. The reason for this is linked to the idea of liquidity. Most low-priced securities are either new or are small in size. Therefore, the number of these securities that can be traded is limited, making the them less liquid.

The bid-ask spread can say a lot about a security and, therefore, you should be aware of all the reasons that are contributing to the bid-ask spread of a security you are following. Your investment strategy and the amount of risk that you are willing to take on may affect what bid-ask spread you find acceptable.

[jeanesy] 20/8/2018 07:56

Lets hope for a stronger day for the POG then and therefore a blue day here !

[bumpa33] 20/8/2018 00:29

interesting commentary on the “Hedge Funds v Banks” positioning in the gold futures market.

[bumpa33] 19/8/2018 23:43

In fact, this is the first time they’ve been “net long” since 2001.

[bumpa33] 19/8/2018 23:24

CFTC Gold commercial futures position now largest net long since 2001...

Anyone know how to post an image and I’ll put the Bloomberg chart up for this.

[wanobi] 19/8/2018 21:43

مرح;بً5; بك في الم;وض 8;ع الخ;اص بي صدي;قي الق;طر¡0; الج;ديž3; ، لا تتر;دد في نشر; الع;رب¡0;ة إذا; كنت; ترغ;ب في ذلك; وسأ;بذ 4; قصا;رى جهد;ي للر;د علي;ك وال;تع6;ير عن الش;كر وال;شكž5;